Accurate inspections are a must for many reasons; banks and investors need to know what condition the property is in. This information can be used to update files, prepare loans, determine if intervention is needed to save the loan or verify if the property is occupied or not.
- Occupancy (drive-by) Inspections – This type of inspection is done to determine if the property is occupied or vacant. This is a visual inspection looking for things like vehicles in the drive, trash on the curb for pick-up and/or people coming and going. This type of inspection also verifies the lawn is being maintained.
- Rush Inspections – Client requests the inspection to be completed, usually within 24 hours. A Rush Inspection can be any type of inspection that is completed in a short time frame.
- Property Inspections – This type of inspection is done to determine the overall condition of the property. The condition of the property affects the property’s value. The property’s condition will affect the bank’s decision when considering repossession, or an equity loan, so be sure to always give correct information.
- Insurance Loss Inspections – The property has an insurable loss due to fire, wind, ice, flood, vandalism or some other covered problem. There may be several inspections required on the property during different phases of the repair. Based on the inspection results, the contractor may be released draws on the percentage of work completed. An appointment is required to meet with the mortgagor or contractor to go over the repairs and obtain sign off for the work completed.
- Commercial Inspections – Usually requires an appointment and generally has nothing to do with the pay status of the loan. Exterior photos should show signage, entrances and exits and surrounding areas. Always read the requirements of the investor to ensure you cover all of the requirements, such as: square feet of the property, number of parking spaces, merchandise, number of apartments, how many employees, hours of operation, how many tenants.